A number of drivers of change have transformed the roles, responsibilities and functions of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop competitive strategies in a global environment, and the demands of a more discerning customer. Select any five current issues and discuss how Operations Management strategies, techniques and systems have evolved in response to these driving forces.

Question 2:

It is often stated that drawing up a good layout involves a sense of intuition and, experience; and is sometimes more of an art than a science. Therefore in most instances, there are specific criteria or factors that have to considered. Select any organisation you are familiar with, preferably a service based organisation, and discuss what criteria and factors are important in designing the layout:

Riverina Auto Parks assembles components that are needed for a new model produced by an international car manufacturer. Their output is dependent on the demand of the car manufacturing plant and at this point of time, 200 units per week are required. Riverina has just purchased the equipment for assembling the component. Details of the processes involved are provided in the table below

Tasks

Time

Preceding Tasks(S)

A

5

-

B

6

-

C

4

-

D

3

A

E

4

B

F

6

C

G

5

D

H

3

E

I

2

F

J

5

G

K

2

H

L

5

J. K

M

6

I, L

As the production manager of Riverina, you are requested to prepare up a suitable layout, using an approach that combines both algorithmic and heuristic method. State clearly how many workstations can be formed. Evaluate also the processes (or tasks) in each work station and the efficiency of the line. Assume an 8-hour working day, and a 5-day working week.

Question

Part A:

The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows:

Year

Mileage

1

3,000

2

4,000

3

3,400

4

3,800

5

3,700

a) Forecast the mileage for next year using a 2-year moving average.

b) Evaluate the MAD based on the 2-year moving average forecast in part (a).

c) Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year's mileage.

d) Evaluate the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and α = 0.3.

e) In addition to mileage what other factors would you consider to make a decision whether a new ambulance should be purchased?

Part B:

The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub.

City

Map Coordinate (x, y)

Shipping Load

A

(5, 10)

5

B

(6, 8)

10

C

(4, 9)

15

D

(9, 5)

5

E

(7, 9)

15

F

(3, 2)

10

G

(2, 6)

5

a) Near which map coordinates should the hub be located?

b) If the shipments from city A triple, how does this change the coordinates? PX

c) Explain the assumptions behind the centre-of-gravity method. How can the model be used in a service facility location?